The Not-So-Secret Way Around U.S. Tariffs

By Into Pacheco
The Wall Street Journal
December 22, 2024
Category: Business & Politics
Region: United States

Cabinets made in China were rerouted through Malaysia and ended up in U.S. kitchens—sparking a Customs probe. …Imported cabinets make up most of the $37.5 billion U.S. market. In 2018, the Trump administration imposed tariffs on Chinese-made cabinets as part of broader tariffs, rerouting the flow of those goods. In 2020, the Biden administration slapped them with up to 262% in antidumping duties, a penalty imposed on imports judged by the U.S. to be sold for below fair value. In response, Haiyan and other Chinese companies have moved operations or established new facilities in countries such as Vietnam, Malaysia or Thailand, where they can send raw materials to make goods. Some companies have used these countries as temporary holding places where they can mask the origin of goods, according to CBP investigations. …“It’s kind of a shell game,” said Betsy Natz of the Kitchen Cabinet Manufacturers Association. [to access the full story a WSJ subscription is required]

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